22 Jan 2015
USD/CAD drops to lows around 1.2330
FXStreet (Edinburgh) - The greenback is losing the grip vs. its fellow neighbor on Thursday, relegating USD/CAD to test the area of session troughs in the low-1.2300s.
USD/CAD retreated from 1.2400
Spot is coming down from yesterday’s fresh multi-year tops around the key barrier at 1.2400, following the unexpected 25 bps rate cut by the BoC and the subsequent dovish tone from Governor Poloz. Nothing from the Canadian docket today, whereas the weekly report on the labour market will be the highlight in the US economy in an otherwise ECB-dominated session.
Still in the aftermath of the BoC move, analysts at BTMU added, “This brought us to the conclusion that this move was very much a one-off insurance type move just in case the oil price shock worsens. The BOC expects oil to recover to USD 60 a barrel later this year”.
USD/CAD key levels
At the moment the pair is losing 0.05% at 1.2328 with the next support at 1.2300 and 1.2200 (psychological levels) followed by 1.2112 (Tenkan Sen). On the other hand, a breakout of 1.2394 (high Jan.22) would open the door to 1.2420 (2015 high Jan.21) and finally 1.257 (high Apr.21 2009).
USD/CAD retreated from 1.2400
Spot is coming down from yesterday’s fresh multi-year tops around the key barrier at 1.2400, following the unexpected 25 bps rate cut by the BoC and the subsequent dovish tone from Governor Poloz. Nothing from the Canadian docket today, whereas the weekly report on the labour market will be the highlight in the US economy in an otherwise ECB-dominated session.
Still in the aftermath of the BoC move, analysts at BTMU added, “This brought us to the conclusion that this move was very much a one-off insurance type move just in case the oil price shock worsens. The BOC expects oil to recover to USD 60 a barrel later this year”.
USD/CAD key levels
At the moment the pair is losing 0.05% at 1.2328 with the next support at 1.2300 and 1.2200 (psychological levels) followed by 1.2112 (Tenkan Sen). On the other hand, a breakout of 1.2394 (high Jan.22) would open the door to 1.2420 (2015 high Jan.21) and finally 1.257 (high Apr.21 2009).